post-renovation analysis:

operating profits=?

earnings before taxes=?

net income available to common stockholders is=?

return on common equity=?

(Evaluating current and pro forma profitability) The annual sales for Salco Inc. were $4.50 milion last year. All sales are on credit. The firm's end-of-yoar balance sheot and income statement were in the popup window: a. Calculate Salco's total asset tumover, operating profit margin, and operating return on assets. b. Salco plans to renovato one of its plants, which will require an added investment in plant and equipment of $1.00milli. The firm will maintain its present debt rafio of 0.500 when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13.0 peroent. What will be the new operating retum on assets for Salco after the plant's renovation? c. Given that the plant renovation in part b occurs and Salco's interest expense rises by $50,000 per year, what will be the return earned on the common stociholders' investment? Compare this rate of retum with that eamed before the renovation. a. Calculate Saloo's total asset tumover, operating profit margin, and operating return on assets. The total asset tumover is x. (Round to two decimal places.) (Click on the following icon 5 in order to copy its contents into a spreadsheet.) (Click on the following icon in order to copy its contents into a spreadsheet.)